To: Allianz Agents
From: Allianz Corporate Communications
Subject: Mooney Class Action Notice
Date: November 25, 2008

The purpose of this letter is to inform you of a class action notice that will be mailed soon to a large number of Allianz Life Insurance Company of North America (Allianz) annuity owners pursuant to a court order. “Mooney” is a lawsuit filed against Allianz in federal court in Minneapolis, Minnesota in 2006 and certified as a class action in May of 2007. The Mooney class consists of all persons, regardless of age, who purchased one of seven deferred bonus annuity products between February 9, 2000 and May 12, 2007. The products included in the class are: Accumulator Bonus Maxxx® Annuity, Accumulator Bonus Maxxx Elite® Annuity, BonusDex® Annuity, BonusDex Elite® Annuity, 10% Bonus PowerDex Elite® Annuity, MasterDex 10® Annuity, and InfiniDex 10TM Annuity. The Complaint in Mooney alleges that Allianz (and its agents), through the consumer brochures and Statements of Understanding, misrepresented the bonus feature of these annuities as providing an “immediate” and “up-front” bonus, when annuity owners had to defer and annuitize over 15 years to receive the full value of the bonus. Plaintiffs also contend that Allianz inappropriately failed to disclose certain factors it used to calculate the amount of payments that it would make to owners of these annuities if they elected to annuitize.

Although the Court certified the class, class action certification is a procedural step and is not a ruling on the merits of the claims against Allianz. Pursuant to the Court’s order, notice of the class action is scheduled to be mailed to all eligible class members no later than December 1, 2008. This notice will be the first time that class members have been notified about the existence of this lawsuit, and of the fact that they may be members of this class. The notice will provide all class members the opportunity to exclude themselves from the lawsuit, if they desire to do so.

The notice may generate inquiries from your clients. As this relates to pending litigation, at this point we are very limited in the information that we can provide to you or to policy owners regarding the litigation. Accordingly, if you receive a communication from such a client regarding the lawsuit or Notice, you should respond only as follows:

  • You should not comment on the merits of the lawsuit.
  • You should not advise the client as to whether they should (or should not) exclude themselves or opt out of the lawsuit.
  • The Court has ruled that the lawsuit can go forward on a class basis, but this ruling has nothing to do with the merits of the claims.
  • Class action certification is one procedural step in a lengthy legal process.
  • Allianz strongly refutes these allegations. The company stands behind its assertion that its deferred fixed annuities are valuable products offering guarantees that responsibly address the unique financial needs of people such as your clients.
  • Allianz believes this lawsuit constitutes a great disservice by fueling misperceptions and factual inaccuracies about deferred fixed annuities. The company is vigorously defending itself and is calling upon a number of experts to demonstrate the value of its products. Allianz expects to be fully vindicated.
  • If the client indicates that he or she is or was represented by counsel, you should advise the client to consult his/her counsel about the notice.

If the client is insistent on getting more information regarding the lawsuit, refer them to the class action notice and information contained in the notice. (Note: The contact information contained in the notice is not an Allianz-sponsored contact. The contact information is staffed by Plaintiffs’ counsel or their representatives.)

The court order does not prohibit Allianz from conducting ordinary business with respect to policy owners. Service requests, such as requests to annuitize; change an address; change of beneficiary; change of ownership; billing changes; death claims, etc. can and should be serviced as normal. In other words, inquiries from class members that do not relate to this lawsuit can be handled as you normally would.

If you have any additional questions, please contact the FASTeam at 800.950.7372 (press “1” for Sales Support).

If you receive any media calls (trade publications, local newspapers, TV) regarding the class action lawsuit, please refer the caller to Allianz Corporate Communications:  Jasmine Jirele 763.765.6087 (ext.36087), or Eryka Jackson 763.765.5415 (ext.45415).  (Note:  These contacts are for media inquiries only and will not be able to provide any additional information regarding the litigation or the notice.)


Guarantees are backed by the financial strength and claims-paying ability of Allianz Life Insurance Company of North America.

Issued by:
Allianz Life Insurance Company of North America
5701 Golden Hills Drive, Minneapolis, MN 55416-1297


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